HomeMy WebLinkAboutReso 2016-2579 RESOLUTION NO. 2016- 2579
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
SUNNY ISLES BEACH, FLORIDA, APPROVING THE RENEWAL
OF THE COMMERCIAL PACKAGE POLICY (PROPERTY,
LIABILITY, AUTOMOBILE), WORKERS COMPENSATION,
AND MISCELLANEOUS INSURANCES WITH BROWN &
BROWN / PREFERRED GOVERNMENT INSURANCE TRUST
(PGIT) FOR THE PERIOD OF OCTOBER 1, 2016 THROUGH
SEPTEMBER 30, 2017, IN AN AMOUNT NOT TO EXCEED ONE
MILLION DOLLARS ($1,000,000.00), AS OUTLINED IN EXHIBIT
"A"; AUTHORIZING THE CITY MANAGER TO DO ALL
THINGS NECESSARY TO EFFECTUATE THIS RESOLUTION;
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, on September 19, 2013 via Resolution No. 2013-2098, the City
Commission entered into an Agreement with Brown & Brown/Preferred Government Insurance
Trust (PGIT) as the City's provider for the Package Policy and Workers Compensation, and
miscellaneous insurances, for a one-year period of October 1, 2013 through September 30, 2014,
in the total amount of Eight Hundred Sixty-Five Thousand Nine Hundred Fifty Dollars
($865,950.00); and
WHEREAS, on September 18, 2014 via Resolution No. 2014-2282, the City
Commission entered into an Agreement with Brown & Brown/Preferred Government Insurance
Trust (PGIT) as the City's provider for the Package Policy and Workers Compensation, and
miscellaneous insurances, for a one-year period of October 1, 2014 through September 30, 2015,
in an amount not to exceed One Million Dollars ($1,000,000.00); and
WHEREAS, on September 17, 2015 via Resolution No. 2015-22452, the City
Commission entered into an Agreement with Brown & Brown/Preferred Government Insurance
Trust (PGIT) as the City's provider for the Package Policy and Workers Compensation, and
miscellaneous insurances, for a one-year period of October 1, 2015 through September 30, 2016,
in an amount not to exceed One Million Dollars ($1,000,000.00); and
WHEREAS, the City has the option to exercise one (1) one-year renewal; and
WHEREAS, the City of Sunny Isles Beach is in need of various insurance coverage to
protect it from liabilities, catastrophes, and other issues that may arise for a one-year period of
October 1, 2016 through September 30, 2017; and
WHEREAS, staff recommends acceptance of the Brown & Brown/Preferred
Governmental Insurance Trust (PGIT) proposal for the Commercial Package Policy and Workers
Compensation, and miscellaneous insurances, in an amount not to exceed One Million Dollars
($1,000,000.00) for a one-year period of October 1, 2016 through September 30, 2017, attached
hereto as Exhibit "A".
R2016-Pgit Insurance Renew(Property,Casualty,Auto,Workers Comp) Page I of 2
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS:
Section 1. Approval of Insurance Renewal. The City Commission hereby approves the
insurance renewal by Brown & Brown/Preferred Government Insurance Trust (PGIT) for the
Commercial Package Policy and Workers Compensation, and miscellaneous insurances, for a
one-year period of October 1, 2016 through September 30, 2017, in an amount not to exceed One
Million Dollars ($1,000,000.00), as outlined in Exhibit "A", attached hereto.
Section 2. Authorization of City Manager. The City Manager is hereby authorized to do all
other things necessary to effectuate this Resolution.
Section 3. Effective Date. This Resolution shall become effective upon adoption.
PASSED AND ADOPTED this 15th day of September 2. 6.
Geor• - H. Scholl, Mayor
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Jane(A. Hines, MMC, City Clerk
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APPROVED AS TO FORM AND
LEG: .UFFICIENCY
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s ttino, City Attorney
Moved by: _
Seconded by: VI cc Y 1 1 0-5o GATTO
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Vote: 6 -o
Mayor Scholl _OYes) (No)
Vice Mayor Gatto (Yes) (No)
Commissioner Aelion V(Yes) (No)
Commissioner Goldman V(Yes) (No)
Commissioner Levin V/ Yes (No)
R2016-Pgit Insurance Renew(Property,Casualty,Auto,Workers Comp) Page 2 of 2
SUMMARY OF PROPOSED PREMIUMS
Premiums as Proposed: xpiring ' enewa
Property—Including Flood and Premium $300,404.00 $300,404.00
Boiler & Machinery Fees&Surcharges N/A N/A
Total $300,404.00 $300,404.00
Liability Coverage Including Law Premium $291,903.00 $286,231.00
Enforcement and Public Official's Taxes&Surcharges N/A N/A
Total $291,903.00 $286,231.00
Automobile Premium $81,080.00 $89,998.00
Taxes&Surcharges N/A N/A
Total $81,080.00 $89,998.00
Inland Marine Premium $8,016.00 $8,660.00
Taxes&Surcharges N/A N/A
Total $8,016.00 $8,660.00
Crime/Fidelity Premium $1,634.00 $1,634.00
Taxes&Surcharges N/A N/A
Total $1,634.00 $1,634.00
Workers' Compensation Premium $165,491.00 $194,193.00
Taxes&Surcharges N/A N/A
Total $165,491.00 $194,193.00
Government Crime Premium $500.00 $500.00
Taxes&Surcharges $6.50 $6.50
Total $506.50 $506.50
Marine Hull Premium $3,000.00 $3,000.00
Taxes&Surcharges $39.00 $39.00
Total $3,039.00 $3,039.00
Sponsored Student Activity Premium $8,460.40 $12,787.50
Taxes&Surcharges N/A N/A
Total $8,460.40 $12,787.50
Plate Glass Premium $17,175.00 $17,175.00
Taxes&Surcharges $4.00 $4.00
Total $17,179.00 $17,179.00
Storage Tank L iability: 01/01/201647 Premium $411.00 $411.00
TOTAL $878,123.00 $915,043.00
Expiring Premium reflects annualized premiums on any midterm policy changes
Fees May Be Fully Earned
*Drone Liability coverage and premium pending
SUNyY '= F City of Sunny Isles Beach
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q Sunny Isles Beach, Florida 33160
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MEMORANDUM
TO: The Honorable Mayor and City Commission
VIA: Christopher J. Russo, City Manager
FROM: Yael Y. Londono, HR & Risk Management Director
DATE: 9/15/2016
Renewal of Property, Casualty,Auto, Workers Comp
RE: Insurance with Brown & Brown/Preferred Government
Insurance Trust (PGIT)
RECOMMENDATION:
It is recommended that the City Commission approve the attached
resolution to renew the City's Property, Liability, Auto, and Workers
Compensation insurance with the Preferred Government Insurance
Trust (PGIT)and/or Brown & Brown Insurance for the period of October
1, 2016 through September 30, 2017 in an amount not to exceed
$1,000,000.00.
REASONS:
The renewal premium for the Commercial Package Policy (Property,
Liability, and Auto) and Workers Compensation is $915,043.00 which is
$36,949.10 or 4.20% more than last year ($878,123.90). The
contributing factor for the premium increase is due to claims, payroll
and additional property. We are currently on the second year of a two
year rate guarantee on the Commercial Package Policy.
Additionally, staff is allocating $84,957.00 for deductibles and for
additional premiums expected upon the completion of capital projects
such as Gateway Park, which will be added to the property insurance
during the upcoming fiscal year.
136
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Staff worked closely with Brown & Brown (Robert Hollander) to review
possible courses of action to reduce premiums to include increasing
our deductibles in certain coverage and the feasibility of self-insurance
in areas that we as a City have had good claims experience. Based on
the available options, renewal with PGIT with the coverage and terms •
indicated is our best, most cost effective, option.
In sum, staff recommends renewal of the Brown & Brown/Preferred
Governmental Insurance Trust (PGIT) proposal for the Package Policy
and Workers Compensation and miscellaneous insurances as
attached.
ADDITIONAL INFORMATION:
The City currently has Commercial Insurance Package (Property,
Casualty, and Auto) and Workers' Compensation insurance through
PGIT which is a premier insurance organization for public entities and is
a non-assessable Trust approved by the Florida State Legislature. The
PGIT board of trustees has elected to purchase an extremely
conservative excess of loss insurance structure which provides PGIT
members several levels of protection that reinsurance does not. PGIT's
excess of loss policies list every individual member a named insured,
giving every member direct access to the insurance company for
payment of claims.
Public Risk Underwriters (PRU), which is a premier insurance service
organization for public entities and is part of Brown & Brown, is the
underwriting group that tailors customized insurance services and
products for the City.
The City has had a Commercial Package Policy (Property, Casualty,
and Auto) and Workers Compensation insurance coverage with PGIT
since October 1, 2003. Previous to this date, from July 1, 2001 through
October 1, 2003, insurance coverage was split between First Specialty
Insurance for Property and Coregis Insurance for General Liability
coverage and with the Florida League of Cities for Workers
Compensation.
FUNDING SOURCE:
Funding is available in the 2-5132 (Risk Management) operating
accounts for the Commercial Package Policy and funding is available in
each department's 424000 (Workers Comp Insurance) account for the
Workers Compensation Policy.
ATTACHMENTS:
137
Description
Summary of Proposed Premiums
Resolution
Item Number: 10.A
138